Otter Tail buys back $47.67 million total of 9% notes due 2016

By Jennifer Chiou

New York, Dec. 2 - Otter Tail Corp. purchased $47.67 million of its $100 million of outstanding 9% notes due Dec. 15, 2016 in November, according to an 8-K filed with the Securities and Exchange Commission.

Specifically, the company bought back $12,933,000 of the notes on Nov. 6 and $34,737,000 of the notes on Nov. 25 for a total purchase price of $59,404,489, including accrued interest of $1,845,368 and a negotiated premium of $9,889,121.

Otter Tail stated that it used cash on hand to fund the purchase.

The filing noted that the amount of the debt retired as a result of these transactions is roughly equivalent to the amount of debt that was associated with the operating companies that the company has divested over the last two years.

Otter Tail is a Fergus Falls, Minn.-based diversified company with operations in electric utility, manufacturing, health services, food ingredient processing and infrastructure businesses, which include plastics, construction and transportation.

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